VST Industries Q1 FY27 PAT Down 24.4% to ₹42.4 Cr on Tax Hike

VST Industries reported its unaudited financial results for the quarter ended June 30, 2026. Net revenue declined by 13.5% to ₹256 crore from ₹296 crore in the same period last year. Profit After Tax (PAT) saw a significant drop of 24.4%, falling to ₹42.4 crore from ₹56.1 crore. This underperformance is attributed to an extraordinary tax increase, with the incidence of tax on cigarettes rising by approximately 50% due to changes in Compensation Cess, GST, and Excise Duty. Cigarette volumes also decreased by 14.4% QoQ. The company plans a measured pricing approach and is focused on recovering volumes through brand strengthening and disciplined execution, while facing challenges from illicit trade and geopolitical instability affecting its unmanufactured tobacco business.